Persimmon names new CEO

26 Feb After an extensive search for a new chief executive, house-builder Persimmon has decided not to make a clean break with the past but instead given the job to long-serving insider David Jenkinson.

Persimmon's new chief executive, David Jenkinson

David Jenkinson, aged 50, was appointed interim CEO in November 2018 on the sacking of the famously well-remunerated Jeff Fairburn. He has been with Persimmon in a number of roles for 22 years, most recently as group managing director, and has been a member of the board for more than five years, with particular responsibility for land purchase.

However, in a bid to avoid Mr Fairburn’s missteps, Mr Jenkinson has agreed that he will not get a pay rise with the new job, will not participate in annual bonus arrangements in 2019 and will not receive an award under the group's 2017 share performance plan.

The remuneration committee will look again at his pay package in autumn 2019 after talking to major shareholders.

When the board pushed out Jeff Fairbun in November after a string of PR gaffes, it said that "the distraction around his remuneration...continues to have a negative impact on the reputation of the business and consequently on Jeff's ability to continue in his role”. [See our previous report here.]

Chairman Roger Devlin said today: "After a thorough search, both within the house-building sector and more widely, it was clear to the board that Dave was the best candidate for the role. Since his appointment as interim CEO last year Dave has shown both strong leadership in maintaining the company's track record of operational excellence but also that he is listening carefully to the views of all our stakeholders. Persimmon remains committed to its goal of being the leading volume builder of good value, traditional family homes throughout the UK."

David Jenkinson said: "Persimmon is a great company with a bright future and I am honoured to have been asked to lead it. My priorities will be to maintain the strong operational and financial momentum of the business, to develop further our customer care operations and to bring a greater focus to our wider responsibilities as a leading UK house builder. We have a strong and committed team and I look forward to continuing to work with all my colleagues to deliver the high quality, attractively priced homes that the UK needs."